Abstract: The Otway Basin CO2 Geological Storage demonstrate project is the first carbon geosequestration international collaborated research program which is integrated from source to sink in Australia, also approved by Carbon Sequestration leadership Forum and International Energy Agency, CO2CRC is in charge of the project. The project site located in the Otway basin in Victoria state. The research project commenced in 2003, the whole research plan including 2 stages, over 65000 tons CO2 had been successfully injected into the Waarre C coarse sandstone Formation in 2000 m depth under subsurface in stage 1, the stage 1 will last 5 years from year 2004 to 2010, the mainly trapping mechanism is structure closure. Stage 2 research is now underway, 10000 tons CO2 will be injected into Paaratte Formation of saline aquifer 1500m under land surface, the aim is to research residual gas trapping and dissolution trapping in saline aquifer.“Huff-push” site field test of pre-injection of stage 2 is now carrying out.